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2024: Revenue cut by 6% to $53.8 billion
Revenue Cisco for the fiscal year ended July 27, 2024 amounted to $53.8 billion. This is 6% less compared to 2022, when the indicator was at around $57 billion. The fall was recorded for the first time since 2020. The network equipment supplier reported on the results of its activities on August 14, 2024.
In total Cisco sales, products in fiscal 2024 accounted for $39.25 billion against $43.14 billion a year earlier. Another $14.55 billion was provided by various services ($13.86 billion in fiscal 2023). This indicates that the company's equipment is selling worse. Cisco's core networking business, which includes switches and routers, has been trending downward since large enterprises began to move en masse to the cloud.
It is noted that the total revenue from subscriptions for the reporting period reached $27.4 billion (including Splunk), which is equivalent to 51% of total income. Sales software amounted to $18.4 billion, which is 9% more than a year earlier. Subscriptions ON to brought in $16.4 billion - plus 15% on an annualized basis: their share was at the level of 89% of total income in the software segment.
In fiscal 2024, Cisco recorded a net profit of $10.3 billion. For comparison, a year earlier, the company earned $12.6 billion. Thus, there was a drop of 18%.
The report also said that in the closed fiscal year, Cisco faced a decline in revenue in all geographic regions. So, in the American market, the fall on an annualized basis was 4% with a final result of $31.97 billion. In Europe, the Middle East and Africa, sales fell by 7%, reaching $14.12 billion. In the Asia-Pacific region, Japan and China, revenue decreased year-on-year by 8% - to $7.72 billion.[1]
2022: Cisco missed $200 million in revenue for the quarter due to a business shutdown in Russia
Cisco estimated at $200 million the effect in its quarterly revenue from the decision to stop business activities in Russia amid a special operation in Ukraine. Cisco financial director Scott Herren[2]., spoke about this on May 18 during a conference call with top managers of the company and analysts[3]
In March, Cisco became one of the last among the largest American technology companies to make statements about stopping operations in Russia or completely leaving the market.
Scott Herren noted during the call that historically Russia, Belarus and Ukraine collectively account for only about 1% of the company's total turnover, but the effect of the conflict in the region on the dynamics of turnover was higher than the traditional contribution of the region. This is partly due to the inability to receive receivables and other payments due to the company.
Cisco partially explains its rather weak result in terms of the dynamics of its total turnover in the 3rd quarter of fiscal 2022, which ended for the company on April 30, by stopping operations in Russia. Revenue increased by only 0.3% year-on-year to $12.835 billion. Earlier, Cisco expected growth of 3-5%.
Another important factor that influenced the dynamics, the company called lockdowns in China due to the growth of coronavirus infections. Because of this, Cisco cannot receive the components it needs from China in a timely manner. The effect of this factor in its quarterly revenue at Cisco was estimated at $300 million.
The forecast for the 4th quarter of fiscal 2022 also did not please investors: Scott Herren announced an expected reduction in revenue from 1% to 5.5% year-on-year, which means a drop from $131 million to $720 million.
Cisco board member and CEO Chuck Robbins explained during a conference call on May 18 that a broader range of revenue forecasts was made taking into account the impact on the turnover of the conflict in Ukraine and the ongoing uncertainty over the lockdown in China.
2021
Fifth in the world among ICT developers by revenue
According to Synergy Research Group, the total revenue of the 13 largest manufacturers of software and ICT services for business, including telecom operators, reached $613 billion in this market in 2021, which is 10% more than a year earlier. Cisco ranked fifth on this list.
Revenue - $49.82 billion, profit - $10.59 billion
In fiscal 2021, Cisco's revenue amounted to $49.82 billion, an increase of 1% compared to the previous year. Sales of hardware and software during this time increased from $35.98 billion to $36.01 billion, and revenues from services increased from $13.32 billion to $13.8 billion.
The infrastructure platform segment, which includes switches, routers and data center solutions, brought Cisco about $27.1 billion in revenue, which is almost exactly in line with fiscal 2020. In a division called Applications (software and teleconference products, including solutions from AppDynamics and WebEx), Cisco's revenue reached $5.5 billion, down 1% year-on-year.
Information security solutions such as firewalls and data loss prevention systems provided Cisco with annual revenue of 3.38 billion (+ 7%). The rest of the products combined added about $19 million to the company's turnover, which is 43% less than a year earlier.
Cisco still has the largest turnover in the Americas. There, the company's revenue in 2021 was $29.16 billion, practically unchanged from the previous year. Sales in the EMEA region (Europe, the Middle East, Africa) increased by 2% - to $12.95 billion. Revenues in the Asia-Pacific region grew by 5%, to $7.71 billion.
Cisco's net profit at the end of the 2021 financial year amounted to $10.59 billion, which is less than the profit a year ago at $11.21 billion.
On the day of publication of reports for 2021 (August 18, 2021 calendar), Cisco shares fell by almost 2%. Since the beginning of 2021, the company's market capitalization has increased by 23.2%, to $236.1 billion.[4]
2020
Share in the global router market - 58.4%
At the end of 2020 Cisco , it occupied 58.4% of the global router market (data). Gartner More. here
Decrease in revenue by 5% to $49.3 billion
Cisco ended fiscal 2020 with revenue of $49.3 billion, down 5% from a year earlier. Previously, revenue has grown since 2017. More than half (51%) of the turnover fell on services and software, and in the software business, about 78% of revenues were occupied by subscription sales.
In the direction of infrastructure platforms, which include switches, routers and solutions for data centers, annual revenue of $27.12 billion was registered, which is 10% less than a year ago.
In a division called Applications (software and products for teleconferencing, including solutions AppDynamics and) WebEx , sales did not decline so much - by 4% to $5.67 billion.
On information security solutions such as firewalls and data leakage prevention systems, the American company earned $3.15 billion in 2020, which is 12% more than in 2019. Thus, the information security business remained Cisco's only growing business.
Cisco's largest revenues are still generated in the Americas - in fiscal 2020, revenue there amounted to $29.29 billion, which is 5% less than a year earlier. In EMEA countries (Europe, Middle East, Africa), sales decreased by 3%, to $12.66 billion, and in the Asia-Pacific region, turnover sank by 6% to $7.35 billion.
Cisco's net profit in fiscal 2020 fell to $11.21 billion from $11.62 billion.
Along with the release of the financial statements, Cisco announced a restructuring that includes a voluntary early retirement program with compensation and job cuts.
At a conference with analysts, Cisco CEO Chuck Robbins said the company aims to cut annual costs by $1 billion.Cisco Fiscal Year 2020 Reporting
2019: Revenue growth 5% to $51.9 billion
In fiscal 2019, which ended on July 27, 2019, Cisco's revenue reached $51.9 billion, an increase of 7% compared to 2018. The company's sales have been growing for two years in a row, which is largely facilitated by information security (information security) solutions.
The Security division responsible for such technologies completed the 2019 fiscal with a turnover of $2.73 billion, which is 16% higher than a year ago. This growth rate was the highest among all Cisco business areas.
Applications, which is responsible for software and teleconference products, recorded a 15 percent increase in annual turnover to $5.8 billion.
Most of the revenue still falls on the segment of the so-called infrastructure platforms (its basis is switches and routers), which in 2019 brought the corporation $30.19 billion in revenue. This is 7% more than the previous year.
The service business is also growing: for the 12-month period, closed at the end of July 2019, revenue here increased by 2% and turned out to be equal to $12.9 billion.
In terms of regions, most of Cisco's revenue continues to come from countries in the Americas. In 2019, revenues in these markets reached $30.93 billion, 6% higher than a year ago.
The company's sales in the EMEA region increased by 5%, they amounted to $13.1 billion there. In the Asia-Pacific region, the vendor's revenue was measured at $7.88 billion, showing an increase of 1% year-on-year.
In fiscal 2019, Cisco experienced a strong jump in profits - to $11.62 billion from $110 million. The small profit in 2018 was due to a write-off of $10.4 billion in connection with the tax reform in the United States, the financial report explains.[5]
2018: Revenue growth 7% to $49.3 billion
In fiscal 2018, Cisco's revenue reached $49.3 billion, an increase of 7% compared to 2017. The reporting period ended on July 28, 2018 calendar year.
Cisco sales in the infrastructure platform category, which includes switches, routers and data center solutions, reached $28.3 billion, which is 2% more than a year ago.
In a division called Applications (software and teleconference products), the revenue of the American corporation turned out to be $5 billion, an increase of 10% on an annualized basis.
Information security (IS) solutions, such as firewalls and data breach prevention systems, brought Cisco annual revenue of $2.4 billion, up 9% from a year earlier.
The sale of products brought Cisco revenue in the amount of $36.7 billion (+ 3% compared to the previous year), and the service business - $12.6 billion (+ 3%).
Much of Cisco's revenue continues to be in the Americas. There, the company's revenue for fiscal year 2018 increased by 3% to $29 billion. In the EMEA region (Europe, Middle East, Africa), sales increased by 4% to $12.4 billion, and in the Asia-Pacific region, growth was 2% on revenue of $7.8 billion.
Cisco's net profit collapsed 87 times - from $9.6 billion to $110 million. The decline was due to the update of tax legislation in the United States: the company had to pay one-time for $10.4 billion to return profits to their homeland and implement other measures.
On the day Cisco's fiscal year 2018 earnings were released, Cisco shares rose 6.1% to $46.53. This was due to improved revenue from software subscriptions, which accounted for about 56% of the vendor's software revenues.[6]
2017: Falling revenues due to weak network equipment sales
On August 16, 2017, Cisco released its fiscal year 2017 report. It follows from the materials that the company's revenues decreased largely due to falling sales of network equipment, which still brings the American vendor most of the revenue.
For the 12-month reporting period ended July 29, 2017, Cisco sales amounted to $48 billion, which is 3% less than a year earlier. Net profit during this time decreased by 11% to $9.6 billion.
Annual sales of Cisco switches amounted to $13.9 billion, down 5% from the previous fiscal year. Router sales fell 4% to $7.8 billion.
The decline also occurred in the segments of solutions for joint work and data centers - by 2% (up to $4.3 billion) and 4% (up to $3.2 billion), respectively.
The fastest growing business was information security. Revenue here in fiscal 2017 jumped 9%, reaching $2.2 billion. In the wireless products market, the company's revenues increased by 5% to $2.8 billion.
As for the regions, Cisco's largest revenue is still generated by the countries of the Americas, where the company's sales for the year amounted to $28.4 billion - 4% less than a year earlier. In EMEA (Europe, Middle East, Africa), revenue fell 2% to $12 billion. In the Asia-Pacific region, a 1 percent rise to $7.7 billion was recorded.
 | We have completed another strong quarter and a turning year, "comments Cisco CEO Chuck Robbins on financial results. - We have made tremendous strides in shifting our business to regular revenue, which is heavily software-driven, and have continued to accelerate innovation in key areas as well as the entire product portfolio. |  |
2016: Profit growth of 20% to $10.7 billion; revenue - $49.2 billion
On August 17, 2016, Cisco announced the results of its work in fiscal year 2016 and reported mass layoffs. The company will cut 7% of the staff, but the media write about a larger personnel purge.
For the 12-month reporting period closed on July 30, 2016, Cisco's revenue amounted to $49.2 billion, which is approximately the same as a year ago. The company's net profit increased by almost 20% and reached $10.7 billion.
In the structure of Cisco's annual revenue, equipment sales took $37.2 billion, and services - $12 billion. In the countries of the Americas, the company's turnover decreased by 1% to $29.4 billion. Revenues in Europe, the Middle East and Africa remained unchanged at $12.3 billion. In the Asia-Pacific region, revenue rose 5% to $7.6 billion.
In fiscal 2016, Cisco's fastest growing business was information security solutions, whose sales jumped 13%, reaching almost $2 billion. In the segment of video products for telecom operators, revenues increased by 12% to $1.9 billion.
Cisco earned $14.7 billion in switch sales, which corresponds to the 2015 fiscal year. In the router market, the company's turnover decreased by 4% to 7.4 billion. The implementation of solutions for collaboration and data centers increased by 9% and 5%, respectively - to 4.4 and 3.4 billion dollars.
Along with the publication of the financial statements, Cisco announced the reduction of 5500 jobs. The day before this report, CRN, citing sources close to Cisco, wrote about the company's plans to lay off from 9 to 14 thousand employees.
As of April 20, 2016, the total number of Cisco personnel totaled 73,104 people. In the event of the liquidation of 14 thousand working positions, the company's staff will decrease by 20%, which has never happened in the history of the American IT giant.[7]
2015
Fin results: revenue of $49.2 billion (+ 4%), profit of $9 billion (+ 14 %)
On August 12, 2015, Cisco released its Fiscal Year 2015 Performance Report. Revenues of the American corporation jumped due to the strengthening of the server business and sales growth in the Americas.
According to data released by Cisco, for the reporting 12-month period ended July 25, 2015, the company raised $49.2 billion, which is 4.3% more on an annualized basis. Net profit during this time increased even more - by 14.4% to $9 billion.
Commenting on the financial statements, Chuck Robbins, who headed Cisco at the end of July 2015, noted that the company ended the year with record revenue and adjusted earnings per share ($2.21).
especially pleased with the strong rise in deferred revenue, which shows the high efficiency of our work towards a more predictable software business model, as well as growing sales and profits," Robbins said.
In the structure of annual revenue, Cisco revenues from the provision of various kinds of services and services reached $11.4 billion against $11 billion in fiscal 2014. The company earned almost $37.6 billion on the sale of products, while a year earlier there was an income of $36.2 billion.
In fiscal 2015, sales of Cisco switching equipment were measured at $14.7 billion, an increase of 5% compared to a year ago. Most of all, revenue from servers for data centers increased - by 22% to $3.2 billion. In the market of routers and solutions for collaboration, turnover growth was measured at 1% and 5%, respectively, and its volume was $7.7 billion and $4 billion. Cisco earned $1.7 billion on information security products, which is 12% more on an annualized basis.
The largest region for the company remains North and South America. There, in 2015, the manufacturer received $29.7 billion in revenue - 7% more compared to the previous year. In EMEA countries (Europe, Middle East, Africa), sales increased by 3% to $12.3 billion. In the Asia-Pacific region, there was a 2 percent decline (up to $7.2 billion).[8]
Q3: Revenue of $12.1 billion (+ 5 %)
During a conference call dedicated to the results of the 3rd quarter of fiscal year 2015, which ended on April 25, the head Cisco John Chambers reported that in the reporting period the company's revenue amounted to $12.1 billion, an increase of 5%.
2014: Revenue $47.1 billion (-3%), earnings $10.9 billion
In August 2014, Cisco reported Q4 financial results and the entire fiscal year, which ended for the company in July. Cisco's revenue for the year amounted to $47.1 billion, a decrease of 3% compared to 2013. The net profit of the company for this period, calculated without taking into account the assumptions, GAAP amounted to $10.9 billion, practically unchanged from the previous reporting period.
Earnings per share in 2014 grew slightly - to $2.06 against $2.02 in 2013, and Cisco's cash, equivalents and investments increased by $1.5 billion over the year, to a total of $52.1 billion.
The company's revenue for the 4th quarter of fiscal 2014 amounted to $12.4 billion, a decrease of 0.5%, and profit excluding GAAP principles - $2.8 billion, which is 0.4% lower than in 2013.
During a conference call on the results of the 4th quarter of fiscal year 2014, Cisco President John Chambers said that total sales in the EMEA region during this period increased by 2%. In Russia, at the same time, they decreased by 30%, Chambers noted.
The President of Cisco outlined a general trend of declining sales in almost all emerging markets where the company operates: the total decline in sales for them in the 4th quarter was 9%. In addition to Russia, among the regions that demonstrated the worst dynamics was China minus 23%. Business Brazil in decreased by 13%. Positive dynamics from of developing countries was observed in, India where revenue increased by 18%.
"We have seen the influence of economic and geopolitical difficulties in China, Brazil, Russia, Argentina, Turkey, Thailand and a number of emerging markets, as well as many other companies. Despite the fact that in the 2nd and 3rd quarters the trends in emerging markets looked better, in the 4th quarter these countries lost their growth rates, and the losses continued, expressed in double digits, "John Chambers said during a conference call.
He added that, unfortunately, looking to the future, Cisco does not foresee the return of sales growth in emerging markets in the next few quarters and expects that the situation may even worsen.
2013: Revenue of $48.6 billion (+ 5 %)
At the end of fiscal year 2013, Cisco's revenue amounted to $48.6 billion.
2012: Revenue of $46.1 billion (+ 7%), profit of $8 billion (+ 24 %)
For fiscal year 2012, Cisco revenue grew 7 percent to $46.1 billion and net income increased 24 percent to $8 billion (GAAP) or $10 billion. UNITED STATES. when calculated without using GAAP principles. At the same time, net income per share of Cisco in fiscal 2012 was $1 49 cents on a GAAP basis, or $1 85 cents on a non-GAAP basis.
As of the end of the fourth quarter of fiscal 2012, Cisco's cash, cash equivalents and investments reached $48.7 billion. For comparison: at the end of the previous quarter, this figure amounted to $48.4 billion, and a year ago - $44.6 billion.
During fiscal 2012, Cisco bought back 262 million ordinary shares totaling $4.4 billion. Thus, since the beginning of this program, the company has bought out and withdrawn 3.7 billion ordinary shares totaling about $76.1 billion. As part of this program, Cisco remained to buy back shares worth about $5.9 billion. The program completion date is not defined. During fiscal 2012, Cisco paid a total of $1.5 billion in dividends to shareholders.
Cisco sales rose just 4.4% in the last fiscal quarter as the company's customers To Europe in South are still heavily impacted by the economic slowdown, and public sector spending declines on both sides of the Atlantic also played a role. In particular, orders from Cisco in the region EMEA decreased by 6%.
In total, for the quarter ended July 12, 2012, Cisco revenue amounted to $11.7 billion. Net income at the same time increased by 56% in quarterly terms to $1.9 billion or $0.36 per share.
Revenue from Cisco's core business, sales of switching and routing solutions, turned out to be fairly flat. The business of collaboration solutions decreased by 8%, including the Telepresence video conferencing line.
Positive results were achieved by vendors in the areas of sale of the Unified Computing System server platform, where orders grew by 58%, as well as wireless solutions, where revenue increased by 22%.
CEO John Chambers said Cisco remains committed to partnering with VMware and EMC despite VMware recently acquiring SDN (software-defined networking) startup Nicira. According to him, Cisco's position also remains strong enough in the markets for virtualization solutions, as well as in the market for network equipment.
At the same time, Cisco continues to implement the reorganization of the product line, announced back in 2011, which has already led to a reduction in $1 billion in annual costs and 12,000 jobs. In May 2012, the company "killed" its Cius tablets, and in the fourth quarter reported another 1.3 thousand employees.
In the first quarter of the new fiscal year, Cisco forecast revenue growth of 2-4% and earnings per share of 45 to 47%.
2011
Year results: revenue - $43.2 billion (+ 8%), profit $6.5 billion (-16.4 %)
Net profit of the largest manufacturer of network equipment Cisco Systems in the 2010-11 fiscal year ended July 30, 2011 decreased by GAAP by 16.4% to 6.5 billion dollars compared to the previous year[9] by[9]
Earnings per share decreased 12% to 1.17. dollar At the same time, the company's revenue increased by 8% to $43.2 billion compared to fiscal 2010. The company itself predicted revenue growth of 7%.
Cisco's decline in annual earnings is partly attributed to the $923 million cost of restructuring the company's business. Most of that spending - $772 million - came in the fourth quarter of the reported financial year.
In the fourth quarter, Cisco 's net income shrank 36% to $1.23 billion from the same period a year earlier, with earnings per share falling by a third to $0.22.
At the same time, quarterly revenue showed a slight increase of 3.3% to $11.2 billion, and turned out to be slightly higher than the forecasts of analysts who expected a turnover of $10.97 billion, writes Bloomberg.
"Thecompany's profit was quite steady, and the decline was due to operating costs," Robert W. Baird & Co., an analyst at the company, told Bloomberg. Jason Noland.
However, strong competitors - Juniper Networks and Hewlett-Packard - are gradually gaining share of the telecommunications equipment market from Cisco with cheaper products, while Cisco's sales volumes continue to decline. Thus, revenue from the sale of switches decreased by 4% at the end of the year to $3.44 billion, and the volume of sales of routers - by 2% to 1.73 billion.
The restructuring should help Cisco regain competitiveness and strengthen its financial position. To this end, the company almost completely stopped producing consumer products, including the Flip series of compact video cameras, and also announced plans to cut approximately 6.5 thousand employees or 9% of the staff. The company intends to achieve a $1 billion cost reduction in the 2011-12 fiscal year and 8% profit growth.
Cisco shares rose 6.6% in over-the-counter trading after the release of the financial statement. Since the beginning of 2011, the company's securities have lost more than 32% on the Nasdaq.
Fiscal second quarter: 10% sales growth
Cisco Systems revenue in the second quarter of fiscal 2012 increased compared to the same period in 2011, the company reported on January 8, 2012. Sales grew by 10.8% and reached $11.5 billion, the report said, which also notes that everything is happening in accordance with the cost reduction plan adopted a quarter earlier.
According to the GAAP statements, Cisco earned $0.40 per share, which exceeds the figure of 48% compared to the second quarter of 2011. GAAP-free earnings were $0.47 per share and beat a preliminary estimate by analysts surveyed by Thomson Financial: they called the figure $0.43. Analysts predicted sales of $11.23 billion in the second quarter.
The CEO of the company John Chambers (John Chambers) said in a press release that the company operates according to a three-year plan to accelerate profit growth, not gross revenue. "We cut our dollars own spending by a billion in the previous quarter," he added.
Cisco embarked on the plan after a downturn in performance prompted a reorganization of the company in 2011 that lasted five months. Among other changes, the company's structure, based on many deliberative bodies, has been replaced by a more traditional organization.
The head of the company also noted that at the time of the recession, Cisco reduced aggressive takeover activities, but now it is returning to the game. According to him, the ideal goal for buying remains the same: this is a business with a staff of engineers of about 100 people and a product that they are going to bring to the market. Companies that recommend purchasing Cisco customers directly are preferred.
According to the company's report, its revenues from sales of the UCS (Unified Computing System) server line in the second quarter increased by 91% compared to the previous year. At the same time, Cisco was able to attract almost 11 thousand customers (10763) in this area. "Together with the implementation of these servers and the Nexus line of switches, Cisco expects to move into the data center market by promoting virtualization and cloud technologies," Chambers said.
According to the CEO of the company, the direction will combine servers, networks and storage, which Cisco offers together with partners - EMC and VMware. Gross income from this direction grew by 88%.
Revenues from sales of routing and switching products also increased, although for each direction by only 8%. Deliveries of video infrastructure services, another key line of Cisco's business, rose 23% in revenue.
In the Americas, Cisco product orders have grown by 5%, in the EMEA market - by 7%, and in the Asia-Pacific region, including Japan - by 14%. Chambers noted that while corporate orders and demand for commercial products rose 7% in each sector and orders for video infrastructure services increased 12%, public sector business shrank 1% as a result of lower budget spending, especially in the U.S.
2009: Revenue $36.12 billion (-9%), earnings $6.13 billion (-24%)
- Revenue - $36.12 billion (-9%)
- Net income - $6.13 billion (-24%)
Capitalization - $98 billion (December 2008). The Cisco brand is estimated at $19.1 billion.
2008: Net income $8 billion
At the end of the fiscal year ended July 25, 2008, the company's revenue amounted to $39.54 billion. Net income - $8.05 billion
See also
Links
Notes
- ↑ Cisco reports fourth quarter and fiscal year 2024 earnings
- ↑ [https://seekingalpha.com/article/4513027-cisco-systems-inc-csco-ceo-chuck-robbins-on-q3-2022-results-earnings-call-transcript of Cisco Systems, Inc
- ↑ . ](CSCO) CEO Chuck Robbins on Q3 2022 Results - Earnings Call Transcript.
- ↑ CISCO REPORTS FOURTH QUARTER AND FISCAL YEAR 2021 EARNINGS
- ↑ Fiscal 2019 financial results
- ↑ Cisco Reports Fourth Quarter and Fiscal Year 2018 Earnings
- ↑ Cisco Reports Fourth Quarter and Fiscal Year 2016 Earnings
- ↑ Cisco Reports Fourth Quarter and Fiscal Year 2015 Earnings
- ↑ 9,0 9,1 [http://digit.ru/business/20110811/383344023.html. Cisco's net profit in the 2010-11 fiscal year decreased
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